August 27, 2024
Over the past several months, following the deployment of the initial version of the Presence Protocol White Paper, we have been performing simulations to refine and optimize the model. These simulations have focused on enhancing profitability, ensuring robustness, and building scalability, with the goal of creating a long-term sustainable ecosystem. As the model has evolved, our analyses have increasingly demonstrated—through mathematical validation—the significant investment opportunity that the Presence Protocol represents.
Before we begin, we want to highlight that the model development and simulations were led by Dr. Khalid Saqr (PhD), our Chief Tokenomics Officer. Khalid is a researcher in fluid mechanics and turbulence modeling, the director of the Research Center for Computational Neurovascular Biomechanics (RCCNB) and Bio-CFD Inc, and a former professor at Tohoku University (Japan). He has published +80 research papers on fluid dynamics and computer simulations. In 2023, Khalid was recognized in Stanford University's World Top 2% Scientists list. Khalid designed the Presence Protocol tokenomics by drawing insights from turbulent systems and applying them to an evidence-based model of consumer behavior, helping us create one of the most innovative societal models of the decade.
Today’s economy is saturated with people offering products and services through online platforms like Instagram and TikTok, which allow businesses to easily advertise and sell without physical contact. However, this vast online market has left behind local businesses—yoga instructors, neighborhood brunches, makeup artists, and other solopreneurs—who are bound by their location and struggle to reach new customers. Platforms like Nextdoor (NASDAQ unicorn) have recognized the potential of local communities, but they still require merchants to invest in resources to capture attention, without any guarantee of sales. Just like other traditional social media, Nextdoor trade attention as currency, which works well at scale but leaves local merchants at a disadvantage.
Local merchants often lack the resources for content creation or paid ads. What they truly need are customers, not followers.
Consumers, especially among the expat community, face similar challenges. The 316 million high-earning international professionals and digital nomads, need to discover local services and connect with their community when they relocate. This exploration period is crucial to set up a quality of life by building their social circles through physical connections with the people around them. The Presence Protocol team understands this firsthand, with 80% of our current 23K users belonging to this expat community.
Presence Protocol ecosystem directly benefits both consumers and merchants. Consumers can discover local offers, collect discounts, and earn PRS tokens as cash-back for physically redeeming them.
This "Earn As You Discover" model drives foot traffic for merchants, who only pay a “cost-per-customer” commission after a purchase is made physically.
This financial model is made viable through SocialFi application of Web3 infrastructure, enabling an automated and secured circulation of value between stakeholders. Historically, SocialFi adoption has been hindered by complex user experiences, but recent advancements in Account Abstraction have made the user experience indistinguishable from classical Web2 applications. At Presence, as first movers, we have partnered with Polygon Labs team, and integrated one of the first stable account abstraction solution, positioning us at the forefront of mass ready SocialFi solutions.
The Presence Protocol is a SocialFi platform where users Earn As They Discover merchants, offers, and like-minded people around them. By participating in the ecosystem, users earn PRS tokens as rewards for engaging with nearby offers and interacting with neighboring communities. Merchants only pay transaction fees to Presence ecosystem as an after sales commission. Meanwhile, tokenomics are designed to drive early adoption, promote engagement, and create long-term value through a deflationary model. The protocol integrates social interactions with financial incentives, fostering a dynamic network that benefits all participants. We’re tapping into the $605B global social commerce market, with a focus on the 316 million high-earning digital nomads and professionals, a segment growing at 35% annually.
<aside> 🏆 A transaction occurs when a user purchases an offer or redeems a voucher, with merchants paying a commission to the protocol based on a "cost-per-customer" model. This ensures merchants only pay after acquiring customers, making it more appealing than traditional advertising models that charge upfront or per click.
Transaction fees are split between the mining pool and the protocol’s treasury. The mining pool funds the "Earn As You Discover" mechanism, rewarding consumers with PRS tokens as cash-back. The treasury supports network sustainability and rewards staked PRS holders with dividends, promoting long-term commitment and managing the circulating supply.
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[Download Presence App on AppleStore to use the Presence Protocol](https://drive.google.com/file/d/1syQ6MPoz2Kko85BVHAeA7a_6It_21u1T/view?resourcekey)
Download Presence App on AppleStore to use the Presence Protocol